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Margin — when investors borrow money

How investors amplify gains — and how they get wiped out.

The idea

Margin means borrowing money from your broker to buy more stock than you can afford. It sounds tempting because it multiplies your gains — but it multiplies your losses just as much. If prices drop too far, you can lose more than you started with and still owe the loan. That's why most experienced investors avoid margin completely. ⚠️

Words to know

Margin: Borrowing money from your broker to buy more stock than your cash alone allows.
Leverage: Using borrowed money to magnify results — it multiplies gains AND losses.
Margin call: When your account drops too low and the broker forces you to sell, usually at the worst time.
ETF: A basket of many stocks; buying one with your own cash is a calmer way to invest.

Try it — no account needed

Your account has $1,000. The app offers you '2× margin' — you can buy $2,000 of stock. Sounds good?

In the full lesson

1Make the call

Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.

Practice with real prices

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